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What Is Earthquake Insurance?

As a conscientious homeowner, you want to ensure you protect your home and property. While you may have a typical homeowner’s policy, you may need additional coverage for earthquakes. This short guide explains how first-dollar earthquake insurance can offer solid loss protection.

First-Dollar Homeowner Policies

Traditional earthquake insurance can come with a hefty price tag. Before you’re reimbursed for damages, you may need to contend with a lengthy claims process. First-dollar earthquake insurance, also known as “shake and pay” coverage, does not require deductibles and pays claims more quickly. This indemnity protection reimburses for several kinds of expenses and losses:

  • Property damage
  • Earthquake sprinkler leaks
  • Hardscape and landscape issues
  • Extra and extraordinary expenses 

Shake and Pay for Businesses

Business owners can also choose shake and pay insurance. It often includes business interruption, engineering and safety certifications, loss of revenue and equity protection plus direct and indirect losses. Like first-dollar policies for homeowners, business shake and pay coverage comes with no deductible and faster claims payments. 

How Claims Are Paid

With first-dollar earthquake insurance, claims payments are based on maximum peak ground acceleration. PGA accounts for potential damage severity even if your property is not right near the epicenter of a quake. TheĀ USGS shakemap measures shaking intensity, including PGA. Keep these details in mind when shopping for coverage.